N.Y. Times in accord under which Slim to invest $250 mln

RobertDaniel

TEL AVIV (MarketWatch) -- New York Times Co.
NYT, +2.20%
reached an agreement under which entities controlled by Carlos Slim will invest in the New York media company through issues of debt and equity. The companies controlled by the Mexican telecommunications investor agreed to buy $250 million of senior unsecured notes due 2015 with detachable warrants. "The notes will rank equally and ratably on a senior unsecured basis with all senior unsecured obligations of New York Times Co.," the company said in a statement late on Monday. The notes have a coupon of 14.053%, of which New York Times Co. may pay 3% in the same notes. The warrants reflect 15.9 million Class A shares of New York Times Co. at a strike price of $6.3572. The warrants expire in January 2015. Slim's companies currently control 6.9% of New York Times, and The Wall Street Journal reported that if the investor exercises the warrants, he'll control about 18% of the Class A shares. The Sulzberger family controls the company through a series of super-voting shares. President and Chief Executive Janet L. Robinson said in a statement that New York Times would use the funds to refinance its existing debt, including a revolving-credit line that matures in May. The company is seeking other financing initiatives to reduce debt with cash generated from operations and saved via cost controls, she said. SunTrust Robinson Humphrey was the placement agent for the deal and Goldman Sachs advised New York Times Co.

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